[HISTORY: Adopted by the City Council of the City of Nanticoke
as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-7-1998 by Ord. No. 24-1998 (Ch. 1, Part 7A, of
the 2004 Code of Ordinances)]
A.
The Treasurer of the City of Nanticoke or such official's designee
(hereinafter, the "municipal officer") is hereby appointed as the
designated officer who is authorized to carry out all responsibilities
and duties of the City stated herein.
B.
A "fire loss" or claim for fire damage is defined as any loss occurring
after the effective date of this article and covered under a policy
of fire insurance, including any endorsements or riders to the policy.
A.
No insurance company, association or exchange (hereinafter the "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within the
City of Nanticoke (hereinafter the "City") where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500,
unless the insurer is furnished by the municipal officer with a City
certificate pursuant to § 508(b)[1] and unless there is compliance with §§ 508(c)
and (d)[2] and the provisions of this article and Article II, Transfer of Fire Insurance Proceeds to Pay Delinquent Taxes and Other Charges, of this chapter.
B.
After full compliance with the requirements of § 508(b)(1)(i)[3] and Article II of this chapter, the insurer shall pay the claim of the named insured; provided, however, that if the loss is agreed upon by the named insured and the insurer equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the building structure, the following procedures shall be followed:
(1)
The insurer shall transfer from the insurance proceeds to the municipal
officer the aggregate of $2,000 for each $15,000 of a claim and for
each fraction of that amount of a claim, provided a) that this section
is to be applied such that if the claim is $15,000 or less, the amount
transferred to the City shall be $2,000; and b) that, if at the time
of a loss report the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure in an amount less than the amount calculated
under the foregoing transfer formula, the insurer shall transfer to
the City from the insurance proceeds the amount based upon the estimate.
(2)
The transfer of proceeds shall be on a pro rate basis by all companies,
associations or exchanges insuring the building or other structure.
Policy proceeds remaining after the transfer to the City shall be
disbursed in accordance with the policy terms.
[3]
Editor's Note: 40 P.S. § 638(b)(1)(i)
C.
After the transfer, the named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the
building or structure, and the designated officer shall return the
amount of the funds transferred to the City in excess of the estimate
to the named insured, if the City has not commenced to remove, repair
or secure the building or other structure.
D.
Upon receipt of proceeds under this section, the City shall do the
following:
(1)
The municipal officer shall place the proceeds in the separate fund
to be used solely as security against the total costs of removing,
repairing or securing the building or structure which are incurred
by the City. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the City in connection with
such removal, repair or securing of the building or any proceedings
related thereto.
(2)
It is the obligation of the insurer when transferring the proceeds
to provide the City with the name and address of the named insured.
Upon receipt of the transferred funds and the name and address of
the named insured, the municipal officer shall contact the named insured,
certify that the proceeds have been received by the City, and notify
the named insured that the procedures under this subsection shall
be followed.
(3)
When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the City and the required proof of such completion received
by the municipal officer, and if the City has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the
named insured. If the City has incurred costs for repair, removal
or securing of the building or structure, the costs shall be paid
from the fund and, if excess funds remain, the City shall transfer
the remaining funds to the named insured.
(4)
To the extent that interest is earned on proceeds held by the City
pursuant to this section and retained by it, such interest shall belong
to the City. To the extent that proceeds are returned to the named
insured, interest earned on such proceeds shall be distributed to
the named insured at the time that the proceeds are returned.
E.
Nothing in this section shall be construed to limit the ability of
the City to recover any deficiency. Furthermore, nothing in this article
shall be construed to prohibit the City and the named insured from
entering into an agreement that permits the transfer of funds to the
named insured if some other reasonable disposition of the damaged
property has been negotiated.
The City Council of the City of Nanticoke may, by resolution,
adopt procedures and regulations to implement § 508[1] and this article and may, by resolution, fix reasonable
fees to be charged for City activities or services provided pursuant
to § 508 and this article, including, but not limited to,
issuance of certificates and bills, performance inspections and opening
separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
[Amended 12-1-2004 by Ord. No. 16-2004]
Any owner of property, any named insured or any insurer who
violates any provision of this article shall, upon conviction thereof,
be sentenced to pay a fine not to exceed $1,000 plus costs or to a
term of imprisonment not to exceed 90 days, or both. Each day that
a violation of this article continues shall constitute a separate
offense.
[Adopted 10-7-1998 by Ord. No. 25-1998 (Ch. 1, Part 7B, of
the 2004 Code of Ordinances)]
A.
The Treasurer of the City of Nanticoke or such official's designee
(hereinafter, the "municipal officer") is hereby appointed as the
designated officer who is authorized to carry out all responsibilities
and duties of the City stated herein.
B.
A "fire loss" or claim for fire damage is defined as any loss occurring
after the effective date of this article and covered under a policy
of fire insurance, including any endorsements or riders to the policy.
A.
No insurance company, association or exchange (hereinafter the "insurer")
doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within the
City of Nanticoke (hereinafter the "City") where the amount recoverable
for the fire loss to the structure under all policies exceeds $7,500,
unless the insurer is furnished by the municipal officer with a City
certificate pursuant to § 508(b)[1] and unless there is compliance with §§ 508(c)
and (d)[2] and the provisions of this article and Article I, Transfer of Fire Insurance Proceeds to Secure Repairs, of this chapter.
B.
The municipal officer shall, upon the written request of the named
insured specifying the tax description of the property, name and address
of the insurer and the date agreed upon by the insurer and the named
insured as the date of the receipt of a loss report of the claim,
furnish the insurer either of the following within 14 working days
of the request:
(1)
A certificate or, at the discretion of the City, a verbal notification
which shall be confirmed in writing by the insurer to the effect that,
as of the date specified in the request, there are no delinquent taxes,
assessments, penalties or user charges against the property and that,
as of the date of the municipal officer's certificate or verbal
notification, the City has not certified any amount as total costs
incurred by the City for the removal, repair or securing of a building
or other structure on the property.
(2)
A certificate and bill showing the amount of delinquent taxes, assessments,
penalties and user charges against the property as of the date specified
in the request that have not been paid as of the date of the certificate
and also showing, as of the date of the municipal officer's certificate,
the amount of total costs, if any, certified to the municipal officer
that have been incurred by the City for the removal, repair or securing
of a building or other structure on the property. For the purposes
of this subsection, the City shall provide to the municipal officer
the total amount, if any, of such costs, if available, or the amount
of costs known to the City at the time of the municipal officer's
certificate.
(3)
A tax, assessment, penalty or user charge becomes delinquent at the
time and on the date a lien could otherwise have been filed against
the property by the City under applicable law.
C.
Upon the receipt of a certificate pursuant to Subsection B(1) above, the insurer shall pay the claim of the named insured in accordance with the policy terms, provided the insurer and the named insured has complied with the terms of Article I, Transfer of Fire Insurance Proceeds to Secure Repairs, of this chapter.
D.
Upon the receipt of a certificate and bill pursuant to Subsection B(2) above, the insurer shall return the bill to the municipal officer and transfer to the municipal officer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs shown on the bill, or the full amount of the insurance proceeds, whichever is the lesser amount. The City shall receive the amount and apply or credit it to payment of the items shown in the bill.
E.
Nothing in this section shall be construed to limit the ability of
the City to recover any deficiency.
A.
The transfer of proceeds to the municipal officer shall be on a pro
rata basis by all insurers with applicable policies of insurance providing
for fire loss.
B.
The City Council of the City of Nanticoke may by resolution adopt
procedures and regulations to implement § 508[1] and this article and may, by resolution, fix reasonable
fees to be charged for City activities or services provided pursuant
to § 508 and this article, including, but not limited to,
issuance of certificates and bills.
[1]
Editor's Note: See 40 P.S. § 638.
[Amended 12-1-2004 by Ord. No. 16-2004]
Any owner of property, any named insured or any insurer who
violates any provision of this article shall, upon conviction thereof,
be sentenced to pay a fine not to exceed $1,000 plus costs or to a
term of imprisonment not to exceed 90 days, or both. Each day that
a violation of this article continues shall constitute a separate
offense.
